We don’t buy individual stocks, but invest in a representative index fund per country. An index represents the value of the largest companies in a country. In Germany, the German stock index DAX. The DAX contains the 30 largest German companies, such as Adidas, Deutsche Bank, Lufthansa and Siemens. In the USA, the index called e.g. Dow Jones summarizes the value of the 30 largest US companies such as Apple, Coca-Cola, McDonalds or Nike.

 

For this we buy so-called index funds. A fund bundles the funds of many investors. As a result, we don’t have to buy the shares of all 30 DAX companies, but only one share of this index fund. In addition, index funds are very cost effective as they don’t require an expensive team of experts to select stocks. These funds can easily be bought and sold on the stock exchange at any time, which is why they are also called Exchange Traded Funds (ETFs).

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